Solar panels are a brilliant investment if you’re looking to slash your energy bills, cut your carbon footprint, and gain some much-needed independence from rising grid prices.
But let’s be honest: the upfront cost can be off-putting.
The good news? You don’t need to fork out thousands to go solar. Thanks to a range of flexible financing options – including solar loans, installer payment plans, and low-cost ownership deals – solar panels are now within reach for more UK homeowners than ever before.
In fact, data from the Microgeneration Certification Scheme (MCS) shows solar is the most popular small-scale renewable energy system in the UK, with over 28.2 million homes eligible. And with costs continuing to fall, smart financing can bridge the gap between “maybe one day” and “let’s do it.”
Key Takeaways:
- The Smart Export Guarantee (SEG) still allows you to earn money from selling excess energy, even if you finance.
- You don’t need to pay up front to get solar panels.
- Financing options include loans, installer payment plans, PPAs, and leases.
- Buying outright offers the best return, but it’s not the only route to savings.
- Some UK providers (like Heatable) offer fixed-price, no-surprise quotes and flexible finance.
Pro tip: Avoid upsells and confusing packages—choose a provider with a clear, fixed-price quote that won’t change. Heatable, a Which?-approved solar installer, offers transparent pricing with no surprises.
What is Solar Panel Financing?
Solar panel financing allows you to spread the cost of your solar system over time, either through loans, monthly lease payments, or pay-as-you-save schemes.
This makes solar accessible without needing to raid your savings – and in many cases, your monthly payments are offset by the energy savings you’re already making.
Related solar guides:
- How many solar panels do you need?
- Smart Export Guarantee
- Can you install solar panels in a conservation area?
- Best 4kw solar system with battery storage
- Sunshine hours map UK
- Best Solar Panels
- Solar panel output calculator
Cash Purchase (Buy Outright)
Best for: Homeowners with available savings who want the highest return.
Buying your system outright gives you full ownership, access to the Smart Export Guarantee, and the biggest long-term savings.
✅ Pros:
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- MCS-accredited & Which? Trusted Trader
- Exclusive REA Fusion solar panels
- Fixed price guarantee — no hidden fees
- Finance options & deposit protection
- Average 4.9/5 rating from thousands of happy customers
- Full ownership from day one
- No interest or monthly payments
- Highest return on investment over time
- Eligible for all government-backed incentives
- Increases home resale value
❌ Cons:
- You’re responsible for any repairs (unless covered under warranty)
- It may not be realistic for budget-conscious households
- High upfront cost (£5,000–£7,000+ for most UK homes)
Check out our video on selecting solar panels in the UK:
2. Solar Loans (Personal or Secured Loans)
Best for: Homeowners who want to own their system but prefer to pay over time.
Solar loans let you borrow the money to purchase your system and pay it back over several years, typically between 3 and 10. These are either:
- Unsecured personal loans (no collateral but higher rates)
- Secured home improvement loans (lower rates, but your property is at risk if you default)
Many solar installers work with loan partners to offer these, or you can shop around with high-street lenders and online platforms.
✅ Pros:
- Spread the cost over time with manageable repayments
- You own the system (and get all the benefits)
- Energy savings and SEG payments can offset repayments
❌ Cons:
- Interest rates vary (typical 4%–9% APR)
- Monthly repayments are a long-term commitment
- May require a good credit score
- Less attractive than mortgage top-ups if rates are high
3. Installer Financing (Buy Now, Pay Monthly)
Best for: Homeowners looking for convenience and bundled deals.
Many UK installers — including Heatable — offer in-house financing or partnerships with lenders. This means you can buy your solar system with £0–£500 down and spread payments over 3 to 10 years.
Some providers offer promotional rates like:
- 0% interest for 12–24 months
- Interest-free for Scottish households via Home Energy Scotland
- Deferred payment options (e.g. nothing to pay for 12 months)
✅ Pros:
- Low or zero upfront cost
- Fixed monthly payments
- You still own the system and get SEG earnings
- Often bundled with maintenance or battery deals
❌ Cons:
- The total cost can be higher than paying upfront
- Interest rates vary — check the APR and hidden fees
- Credit checks required
💡 Important tip: Always check if the installer is FCA-authorised. Look for fixed pricing and avoid “bait and switch” quotes.
4. Solar Leasing and Power Purchase Agreements (PPAs)
Best for: Homeowners who want solar with zero ownership or upfront cost.
With a solar lease, a third party installs the panels, and you pay a monthly fee to “rent” the system. With a PPA, you only pay for the energy the system generates, usually cheaper than grid energy.
Both options are rare in the UK residential market, but may be offered by larger solar aggregators or commercial-scale installers.
✅ Pros:
- No upfront cost
- Fixed, predictable energy bills
- Maintenance and repairs are handled by the provider
- Useful for landlords or homeowners planning to move soon
❌ Cons:
- You don’t own the system
- Not eligible for SEG or tax incentives
- Lease/PPA must usually be transferred if you sell the house
- Long-term contracts (10–25 years)
5. Mortgage Top-Ups and Green Home Improvement Loans
Best for: Homeowners refinancing or buying a new home.
Some mortgage lenders allow you to borrow extra when remortgaging or purchasing, with lower rates than unsecured loans. Also consider:
- Green mortgages with cashback or discounted rates
- Home Energy Scotland interest-free loans (Scotland only)
- Council grants or energy-efficiency schemes (rare, but localised)
✅ Pros:
- Lower interest rates than personal loans
- Easy to include in larger renovation or remortgage plans
- Can you future-proof your home for EPC rules
❌ Cons:
- Increases total mortgage debt
- Only worthwhile if you’re already refinancing
- May require reevaluation of the property
Quick Comparison Table:
| Option | Upfront Cost | Ownership | Eligible for SEG | Credit Check | Typical Term |
| Cash Purchase | High | Yes | Yes | No | N/A |
| Solar Loan | Low/Medium | Yes | Yes | Yes | 3-10 years |
| Installer Finance | Low | Yes | Yes | Yes | 3-10 years |
| Lease /PPA | £0 | No | No | Maybe | 10-25 years |
| Mortgage Top-Up | Low/Medium | Yes | Yes | Yes | 10-25 years |
Final Thoughts: What’s Right for You?
If you’ve got the cash, buying outright is still the best bang for your buck. But if not, don’t stress – solar financing has come a long way.
From pay-as-you-save options to low-rate loans and installer deals, there’s likely a solution that fits your needs and budget.
Just make sure you:
- Check the total repayment cost, not just the monthly fee
- Compare quotes from multiple providers
- Prioritise FCA-approved installers with clear terms
💡 Start with a fixed-price quote from a trusted installer like Heatable. You’ll know exactly what you’re paying — and how fast your system will pay for itself.
Sources:
💷 Learn more about finance, costs & tariffs:
- Why is electricity more expensive than gas?
- Solar panel finance
- Solar panel costs
- Solar panel cost calculator
- VAT on solar panels
- Smart Export Guarantee rates
- Feed-in tariff
- Average monthly electric bill with solar
- British Gas EV tariff
- Best EV tariffs UK
- Rent a roof
- Free solar panels
- Leasing solar panels